run dell by gagan mokha

8/9/2019 Run Dell by gagan mokha

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RUNDELS DEPARTMENT STORE

Rundels Division Of Urban Stores.

Smaller Store In The Ownership Group.

Leader In Trying New Concepts.

Located in a midwestern city.

Dominant Department Store In The Market.

Major Competotor Youngstons.


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RUNDELS DEPARTMENT STORE

URBAN STORES A major Department Store

Ownership Group.

Sixteen Operating Divisions.

Each Division Operated Autonomously.


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RUNDEL DEPARTMENT STORES PROFITS

$0

$100

$200

$300

$400

$500

$600

$700

19871988

1989

NET INCOME(IN $10,000)

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RETAIL MIX

RUNDELS DEPARTMENT

MENS JEANS.

Three Suppliers:

Levi, Farah, low priced supplier. Designed for over 30 males.

Full Line Of Mens Regular PANTS.

Suppliers :

Levi, farah, spotwood and 2 other.

Off Brands to promote sales.


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RETAIL MIX

RUNDELS DEPARTMENT

MENSJEANS

THREESUPPLIERS

DESIGNED FOROVER 30MALES

REGULARPANTS

2 SUPLIERS, LOCAL

BRANDS ALSO.

OFF BRANDSto promote

sales.


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METROPOLITIAN AREA

UNIQUE OR NOT?

No, it is not Unique.

Located In medium- sized midwestern city.

The other Department store- Youngstons.

Branch Outlets also in the same sub-urban area.


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METROPOLITIAN AREA : UNIQUE ORNOT?

LOCATED IN MID- SIZED MID WESTENCITY.

THE DOMINANT COMPETITOR-YOUNGTONS

BRANCH OUTLETS ALSO IN THE SAMEUBURBAN AREA.


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DAVIS MANUFACTURING COMPANY

Large Manufacturer of broad line of Mens Clothes.

Ranks Among top five manufacturers of mens apparel.

Recent Years Not So Successful. Failed to keep pace with the industry.

Only Fine for discount stores .

Effort to recapture quality image.

New designers had been hired.

Entire New Designer Line of Slacks , jeans andcoordinates developed.


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THE VENDOR PROGRAM

Business needs of Rundels from Davis:

Davis agrees to maintain continuity of supply ofregular stock by filling orders on a 2- week basis.

Ability to maintain markup of 48 % on basic stock.

Guaranteed Turnover rate of 3.5 in 1990, 4.0 thereafter.

Markdown Rates not to exceed 10% .

Davis advertising to include 60% of costs to amaximum of Rundel's purchases from Davis.


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DAVIS- AGREE OR NOT?

It Should Agree:

Recently Not So Successful.

Wants to Re- establish its position.

Rundell can be a key account.

Rundels will support Davis:

By developing Davis as a major department store.

Departmental features and display of regularrunning items.


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PREPRATIONS

SUE ANDERSON- DAVIS

Focus on quality image

Information about the new designers

Market growth rate

Negotiations on the offers

Vendor support to focus on smooth and strong

distribution


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GORDON FRANKLIN

Mentioned terms and condition

Quality issues

Support by rundel

Importance of rundel for davis

Win win situation for both


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THANK UU!

THANK

YOU

run dell by gagan mokha

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